IRS Reveals Draft for Crypto Taxation Form 1099-DA

IRS Drafts Crypto Tax Form

The U.S. Internal Revenue Service (IRS) has showcased a draft of a new form, dubbed 1099-DA, designed for cryptocurrency taxation reporting.
The proposed form aims to streamline the process of declaring taxable gains or losses from brokered digital asset transactions.
It is replete with detailed fields for individual token codes, wallet addresses, and transaction locations on blockchains.
This draft, still subject to changes, reflects the IRS's efforts to clarify tax obligations for crypto investors.

Crypto Industry on Edge

The forthcoming tax regulations, which are currently in debate, have jolted the cryptocurrency industry.
Concerns have been raised regarding the identification of digital asset brokers who are to comply.
These could potentially include various entities like wallet providers and payment processors.
The draft form also categorizes the type of brokers, indicating a meticulous approach to the new tax reporting system.

Industry Experts Weigh In

Industry professionals have examined the draft form, noting its similarities to traditional financial reporting documents and its complex design.
They have made particular references to the inclusion of wash sales and internal crypto firm transactions.
Public commentary is encouraged by the IRS on this draft, with a projected finalization hinted for sometime this year, suggesting significant progress for regulatory clarity in the crypto space.